Tuesday, 27 February 2018

Special Ops "SQM Lithium Oversupply Scare 2.0": Now Let's Watch The M&A Deals - South Korea's POSCO Signs Long-term Deal To Buy Lithium From Australia's Pilbara.

Morgan Stanley has joined The Panic about SQM Lithium OverSupply Scare 2.0 yesterday. Much better experts on Lithium Supply than me have called this "piece of work" by all the right names already. Banking Slang (BS) is easy to translate once you can see where "the smart money" is going. The attempts to generate "Lithium 50 Cents Trades" again hopefully will be not very successful.  The wave of M&A deals and Long-term Lithium Supply deals will open the cards of the "super smart players" at this Geo-Political Poker table. The ugly truth is that, literally, only a few lithium companies can sign any long-term Lithium Supply Agreements and even less will be able to deliver ... 

All major names have retested the level of education of their lithium investors yesterday and we can form a very powerful double-bottom technical base for the real fireworks now. The Panic is here, but it is not about any of the mysterious "Lithium Oversupply" - the real Panic is about the Security of Lithium Supply. The Tsunami of Model 3 is coming after Tesla Energy rEVolution Earthquake in the auto industry. DIEsel is dying by the thousand cuts. More than 200 new EVs models are coming by 2020.

Security Of Lithium Supply For Tesla Energy rEVolution: Wood Mackenzie - “I Think A Lot Of Car Manufacturers Are Almost Panicking."

Ganfeng Lithium's $1 Billion Dollars Hong Kong IPO is making headlines and literally, only a few companies in the world can provide long-term contracts to supply lithium. Recent shakedown of the lithium sector provides the best entry point for "the smart money" and will open the new wave of M&A deals. Whether this "smart money" and people who have orchestrated the panic about SQM Lithium OverSupply Scare 2.0 are the same is not so important now. The fireworks are coming every time if you put disruption of $12 Trillion dollars industries of Transportation and Energy on the top of Lithium Market, which was only $3 Billion in sales in 2017. Read more.

SQM Lithium OverSupply Scare 2.0 Aftermath: As Heard On Bloomberg - "There Is Not Enough Lithium To Make All Cars Electric".

Ganfeng Lithium is UP another 8% after Chinese Holidays, the total move is UP 28% after almost 50% correction. Succesful $1 Billion Dollars IPO in Hong Kong for the largest integrated lithium materials producer in China will bring the attention back.

Lithium Americas with Investment Stake and JV with Ganfeng Lithium.

Kirill Klip: International Lithium Corp. Presentation At Wentworth. "Lithium Race And Energy rEVolution - The World Just Before The INTERNET."


Please read legal disclaimer. There is no investment advice on this blog. Always consult a qualified financial adviser before any investment decisions. DYOR.


South Korea's POSCO Signs Long-term Deal To Buy Lithium From Australia's Pilbara.

SEOUL, Feb 27 (Reuters) - South Korean steelmaker POSCO on Tuesday said it had agreed to buy up to 240,000 tonnes of lithium concentrate per year from Australian miner Pilbara Minerals, using the commodity to help supply producers of electric vehicle batteries. 
As part of the deal, the Australian unit of POSCO will acquire a 4.75 percent stake in Pilbara for A$79.6 million ($62.49 million). 
POSCO said in a statement that it planned to make about 30,000 tonnes of lithium products per year starting from 2020. It plans to supply these to firms including battery material manufacturing affiliate POSCO ES Materials and its joint venture with China’s Huayou Cobalt Co Ltd, as well as South Korean battery makers. 
Key South Korean battery makers include LG Chem, Samsung SDI and SK Innovation. 
POSCO said the deal meant it had secured a stable source of raw materials for manufacturing batteries, adding that it would be able to choose between different sources of lithium depending on prices. It said other sources of the material included recycling. 
POSCO also agreed to acquire convertible bonds worth about A$79.6 million that can be turned into another stake in Pilbara. 
Pilbara Minerals, which owns 100 percent of the Pilgangoora lithium mine in western Australia, plans to begin production of about 300,000 tonnes of lithium concentrate in the second half of this year, eventually reaching as much as 800,000 tonnes annually, POSCO said. 
It added that Pilbara also planned to take a 30-percent stake in POSCO’s planned future lithium factory. POSCO has yet to disclose a timetable or location for that facility.

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